Reporting of fraud and error
You'll learn how to handle fraud and error discoveries during an audit—a critical skill for the AA exam. This lesson walks you through the three-step process: discuss the facts with management and document thoroughly, assess the potential impact across the financial statements and increase your professional
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In this lesson
- 0:00 Reporting fraud and error: the three-step process
- 0:36 Assessing impact across financial statements
- 1:16 Communication and escalation pathways
- 2:29 Modified audit opinions for material misstatements
- 3:37 Considering withdrawal from engagement
About this lesson
scepticism, then consider the appropriate reporting level—whether that's management, those charged with governance, legal advisors, or regulators. You'll also understand when to modify your audit opinion (qualified, adverse, or disclaimer) and the rare circumstances when withdrawal from the engagement might be necessary. Mastering this process ensures you respond ethically and professionally to fraud and error while protecting both the audit and the public interest.
Duration: 5m
Transcript
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